Unit - 5
Use case 3
Q1) Explain blockchain used by government.
A1) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
Following are the benefits in blockchain for government:
- Building trust with citizen
- Protecting sensitive data
- Reducing costs and improving efficiency
The blockchain is the solution on transparency through decentralization.
It allows the participant parties to see and verify data in network.
The blockchain gives the services to the citizens for independent verification of government claims.
The government has large amount of hackers to steal the sensitive data.
Therefore blockchain becomes the solution for protecting the sensitive data on the network.
The data structure which is harden network security by reducing single point of failures risk.
The government becomes serious about the blockchain in cyber security department.
The government always manages the cost of budget where blockchain becomes helper of government.
The blockchain solutions could reduce the redundancy, streamline processes, decrease audit burden, increase security and ensures data integrity.
Q2) Explain digital identity used by blockchain of government.
A2) The identity and security are two complex issues for enterprise and government system.
The blockchain provides the solution for exceptional utility in solving issues of identity and digital system.
The digital identity arises organically because of the web.
The user fill the personal information on the web and the digital identity becomes automatically.
The digital identity can be pseudonymous which is linked to the device’s IP address.
The digital identity contains the username, password, driver’s license number, online purchasing history, date of birth, online search activities and medical history, etc.
Following figure 2.1 represents the Biometric, behavioral, biographic can become the Person’s identity.
Fig. No. 1
Q3) Explain why government used blockchain.
A3) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
Following are the benefits in blockchain for government:
- Building trust with citizen
- Protecting sensitive data
- Reducing costs and improving efficiency
The blockchain is the solution on transparency through decentralization.
It allows the participant parties to see and verify data in network.
The blockchain gives the services to the citizens for independent verification of government claims.
The government has large amount of hackers to steal the sensitive data.
Therefore blockchain becomes the solution for protecting the sensitive data on the network.
The data structure which is harden network security by reducing single point of failures risk.
The government becomes serious about the blockchain in cyber security department.
The government always manages the cost of budget where blockchain becomes helper of government.
The blockchain solutions could reduce the redundancy, streamline processes, decrease audit burden, increase security and ensures data integrity.
Q4) Write short note on digital identity.
A4) The blockchain developed from Distributed ledger technology to track bitcoin ownership.
The blockchain technology replace the traditional system with highly trusted mechanism of managing identities.
The blockchain provides greater control over their own identity.
The organization only can use with customer’s consent and there is no central entity would be able to compromise a consumer’s identity.
The blockchain provides the facility of identity to the users called as self-sovereign.
This is inherently unalterable and more secure than traditional identity system.
The self-sovereign used to verify the user’s identity and to remove need for password.
The identity and security are two complex issues for enterprise and government system.
The blockchain provides the solution for exceptional utility in solving issues of identity and digital system.
The digital identity arises organically because of the web.
The user fill the personal information on the web and the digital identity becomes automatically.
The digital identity can be pseudonymous which is linked to the device’s IP address.
The digital identity contains the username, password, drivers license number, online purchasing history, date of birth, online search activities and medical history, etc.
The blockchain self-sovereign identity allow user to
- Control the user’s identity
- Access and update the information
- Choose the information that need to be private
- Move the data
- Delete identity if user’s want
Q5) Explain land records used by blockchain of government.
A5) There are various departments of government where the blockchain is used such as:
- Land management
- Digital identity
- Property records
- Scheme management
- Agriculture management
- Electronic health records
The land management is the registration of all the lands that are authorized by government geographical location.
The government has to keep records of all the land and the local bodies of government.
The blockchain provides the trust, transparency and accuracy in maintaining the land records.
It also helps to build a robust land management system.
The blockchain provides the reduction in cost of storing the physical records about the land property.
This will helps in time and promotes the transparency.
Q6) Explain the trends of blockchain used in government.
A6) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
Following are the benefits in blockchain for government:
- Building trust with citizen
- Protecting sensitive data
- Reducing costs and improving efficiency
The blockchain is the solution on transparency through decentralization.
Trends of blockchain usage in Government
According to transparency and market research, the blockchain usage is expanding at a rapid pace all over the world.
The blockchain is used in Dubai put100% of their records pertaining to land registry.
The blockchain is used to validate property related government transaction in Republic of Georgia.
The blockchain is developed in some countries like Sweden, Honduras and others for enabling secured e- Governance.
In India the Andhra Pradesh becomes the first state who pilot the blockchain technology in two department and plans to deploy it across the administration.
Q7) Explain consensus used in blockchain of government.
A7) As the blockchain technology ensure privacy, security, transparency and immutability.
There is no central authority is present to verify the transactions therefore the blockchain considered as completely secure and verified.
This is all because of consensus protocols present in blockchain technology.
The consensus mechanism is core part of blockchain.
The consensus protocol ensures that every block which is going to added in blockchain should be only the truth that is agreed by all the nodes in blockchain.
Consensus mechanism provides the reliability in blockchain where trust is in between the unknown peers established in distributed network.
Consensus is basically a common agreement works in entire network.
Following are various consensus algorithms used in blockchain.
- Proof Of Work (Pow)
- Practical Byzantine Fault Tolerance(Pbft)
- Proof Of Stake (Pos)
- Proof Of Burn (Pob)
- Proof Of Capacity
- Proof Of Elapsed Time
Q8) Explain land records and other kinds of record keeping between government entities.
A8) The blockchain is the decentralized, distributed and digital network to record the information in a tamper proof with an automated way to enforce trust among different participant.
The blocks in blockchain are connected uniquely to the previous block via digital signature.
The blockchain in network captures, manipulates and builds the consensus among participants.
It makes a change to record without disturbing the previous records in the chain is not possible. Hence the information must be tamper proof.
There are various departments of government where the blockchain is used such as:
- Land management
- Digital identity
- Property records
- Scheme management
- Agriculture management
- Electronic health records
The land management is the registration of all the lands that are authorized by government geographical location.
The government has to keep records of all the land and the local bodies of government.
The blockchain provides the trust, transparency and accuracy in maintaining the land records.
It also helps to build a robust land management system.
The blockchain provides the reduction in cost of storing the physical records about the land property.
This will helps in time and promotes the transparency.
The seller and buyer meets at registration office in today’s scenario.
The physical documents in the presence of registrar and completes the land registration.
Following are some issues in land registration.
- Unclear land titles, leading to huge GDP lost
- Duplicate land records
- Land records are maintained in silos, updating and verifying the records is challenge
- Poor recording keeping, most of the dealing with inaccurate data
- Multiple land web portals and no of them provide single source of truth
Q9) Explain public distribution system social welfare system blockchain cryptography.
A9) The public distribution system is the system where the government create a supply chain to reach towards the public such as ration card is used by public to gain the glossary form government.
PDS involves the process of finding the farmers till distribution to ration card beneficiaries where different entities comes into chain like central and state agencies, milers, transporters, shop owners and then finally beneficiaries.
The entire supply chain process of finding the chain till disbursement can be the part of blockchain.
The farmer provides the food grain to the government under minimum support prize (MSP).
Milers identifies the collected food grain and then hull it to be returned to government.
The food grain then moved to the godown to be distributed to various block godown. This block godown gets distributed then to the fair price shops (FPS) for beneficiary distribution.
The farmer gets the payment under collected food grain MSP.
The government agencies allow the registered miler to collect the food grain.
The blockchain helps in payment and stock in PDS.
The blockchain can remove the delay in payment from the milers to the farmers.
As the milers are responsible for the collection and stock related transaction.
Q10) Explain privacy and security on blockchain.
A10) The government uses the electronics government (E-government) to deliver the public services to individuals and organization.
The blockchain is used to provide information and communication to public effectively, efficiently and transparently.
The E government is the complex system which need to be distributed over network.
The e government should be secure, privacy preserved and less failure.
The blockchain technology involves the high security and privacy preserving decentralized system to the government.
In this the government information is decentralized where no other third party involve in sharing of data.
The new data and existing data is stored in the sealed compartment of block in blockchain technology.
The blockchain in e government build the trust on information high security and privacy in public sectors.
Q11) Explain the consensus protocol used in blockchain of government.
A11) The blockchain is a distributed and decentralized network which provides privacy, immutability, transparency and security.
There is no central authorization in blockchain therefore it is completely secure and verified structure.
This is possible only because of consensus protocol.
Consensus protocols are the core part of blockchain network.
The consensus algorithm is a procedure through which all the participants of the blockchain network reach a common agreement about present state of distributed ledger.
The consensus algorithm gives the reliability to the blockchain.
Following are the various consensus algorithms used by blockchain network.
- Proof pf work
- Practical byzantine fault tolerance
- Proof of stake
- Proof of burn
- Proof of capacity
- Proof of elapsed time
Proof of work
This consensus algorithm is used to solve complex mathematical puzzles.
The mathematical puzzles requires lot of computational power and then node who solves the puzzle soon that gets the mine to the next block.
The bitcoin uses the Proof of Work consensus algorithm.
In this consensus the miner is selected for next block generation.
Practical byzantine fault tolerance (PBFT)
The PBFT consensus algorithm is used in asynchronous system where no upper bound on when the response to the request will be received.
This consensus algorithm is used on low overhead time.
Practical byzantine fault tolerance selves the many problems regarding to byzantine fault tolerance solution which is available.
BFT is the consensus used when some of the nodes in the network fail to respond or respond incorrect information.
This algorithm is used in blockchain and distributed computing.
Proof of stake (PoS)
It is alternative of proof of work (Pow).
The PoS used by Ethereum which is shifted from PoW consensus.
In this consensus algorithm the validators invest on the coin of the system by locking up some of their coins as stake.
Instead of investing on expensive hardware to solve complex puzzles validators invest on locking up coins as stake.
After that all the validators start validating the blocks.
Validators placed bet on the block that they wants to be added if the block is discovered the block is added into the chain.
As the block gets added by validators they win reward according to their bets and their stakes get increase respectively.
At the end, a validator is chosen to generate a new block based on their economic stake in the network.
Hence PoS encourages validators through an incentive mechanism to reach an agreement.
Proof of burn (PoB)
The validators in the PoB invest on ‘burn’ coins by sending it to address from where the loss is irretrievable.
The validators does not invest on expensive hardware equipment.
The validators commit the coins to unreachable address to achieve privilege to mine on the system based on random selection process.
Hence the burning means the validators committing the long term investment on their short term loss.
The PoB implemented will cause the native currency to be burn by validators in bitcoins.
The more coins the validator burn, better are their chances of being selected to mine the next block.
Proof of capacity (PoC)
In the proof of capacity consensus algorithm, the validators invest on the hard drive space.
The validators does not invest on the expensive hardware or burning coins.
As validator gets more hard drive spaces they can get chance to mine for next block and can earn block reward.
Proof of elapsed ti me (PoET)
The proof of elapsed time is one of the fairest consensus algorithm where the next block is chosen fairly only.
This consensus algorithm is used by permissioned blockchain network.
In this algorithm, every validator get a fair chance to create its own block.
Every node is waiting for random amount of time with adding a proof of their wait in the block.
The block gets broadcasted to the network for others consideration.
The validator who has least time of value in proof part that validator get chance to add their block in the network of blockchain.
Q12) How blockchain provides the privacy and security to the organization?
A12) The government uses the electronics government (E-government) to deliver the public services to individuals and organization.
The blockchain is used to provide information and communication to public effectively, efficiently and transparently.
The E government is the complex system which need to be distributed over network.
The e government should be secure, privacy preserved and less failure.
The blockchain technology involves the high security and privacy preserving decentralized system to the government.
In this the government information is decentralized where no other third party involve in sharing of data.
The new data and existing data is stored in the sealed compartment of block in blockchain technology.
The blockchain in e government build the trust on information high security and privacy in public sectors.
Q13) Explain how government deal with the identity of public.
A13) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
Following are the benefits in blockchain for government:
- Building trust with citizen
- Protecting sensitive data
- Reducing costs and improving efficiency
The blockchain is the solution on transparency through decentralization.
It allows the participant parties to see and verify data in network.
The identity and security are two complex issues for enterprise and government system.
The blockchain provides the solution for exceptional utility in solving issues of identity and digital system.
The digital identity arises organically because of the web.
The user fill the personal information on the web and the digital identity becomes automatically.
The digital identity can be pseudonymous which is linked to the device’s IP address.
The digital identity contains the username, password, driver’s license number, online purchasing history, date of birth, online search activities and medical history, etc.
Following figure represents the Biometric, behavioral, biographic can become the Person’s identity.
Fig. No. 2
Q14) Explain self-sovereign identity used in blockchain of government.
A14) The blockchain developed from Distributed ledger technology to track bitcoin ownership.
The blockchain technology replace the traditional system with highly trusted mechanism of managing identities.
The blockchain provides greater control over their own identity.
The organization only can use with customer’s consent and there is no central entity would be able to compromise a consumer’s identity.
The blockchain provides the facility of identity to the users called as self-sovereign.
This is inherently unalterable and more secure than traditional identity system.
The self-sovereign used to verify the user’s identity and to remove need for password.
The identity and security are two complex issues for enterprise and government system.
The blockchain provides the solution for exceptional utility in solving issues of identity and digital system.
The digital identity arises organically because of the web.
The user fill the personal information on the web and the digital identity becomes automatically.
The digital identity can be pseudonymous which is linked to the device’s IP address.
The digital identity contains the username, password, drivers license number, online purchasing history, date of birth, online search activities and medical history, etc.
The blockchain self-sovereign identity allow user to
- Control the user’s identity
- Access and update the information
- Choose the information that need to be private
- Move the data
- Delete identity if user’s want
Following are the characteristics of self-sovereign identity:
Minimalistic – it discloses least amount of data needed for a task
Security – it provides the privacy and confidentiality
Control – it controls the user’s ID
Consent- the ID used when user agrees
Portability- it provides inter-operability
Persistent- the ID of user cannot be taken away from the user
Resilient- it provides the censorship and ID deletion operations.
Q15) Explain blockchain with privacy and security.
A15) The government uses the electronics government (E-government) to deliver the public services to individuals and organization.
The blockchain is used to provide information and communication to public effectively, efficiently and transparently.
The E government is the complex system which need to be distributed over network.
The e government should be secure, privacy preserved and less failure.
The blockchain technology involves the high security and privacy preserving decentralized system to the government.
In this the government information is decentralized where no other third party involve in sharing of data.
The new data and existing data is stored in the sealed compartment of block in blockchain technology.
The blockchain in e government build the trust on information high security and privacy in public sectors.
Q16) Explain how government keep the record of land and other entities of public.
A16) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
Following are the benefits in blockchain for government:
- Building trust with citizen
- Protecting sensitive data
- Reducing costs and improving efficiency
The blockchain is the solution on transparency through decentralization.
It allows the participant parties to see and verify data in network.
The blockchain gives the services to the citizens for independent verification of government claims.
There are various departments of government where the blockchain is used such as:
- Land management
- Digital identity
- Property records
- Scheme management
- Agriculture management
- Electronic health records
The land management is the registration of all the lands that are authorized by government geographical location.
The government has to keep records of all the land and the local bodies of government.
The blockchain provides the trust, transparency and accuracy in maintaining the land records.
It also helps to build a robust land management system.
The blockchain provides the reduction in cost of storing the physical records about the land property.
This will helps in time and promotes the transparency.
Q17) Analyze the record keeping of government using blockchain.
A17) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
The blockchain is the solution on transparency through decentralization.
It allows the participant parties to see and verify data in network.
The blockchain gives the services to the citizens for independent verification of government claims.
The government has large amount of hackers to steal the sensitive data.
Therefore blockchain becomes the solution for protecting the sensitive data on the network.
There are various departments of government where the blockchain is used such as:
- Land management
- Digital identity
- Property records
- Scheme management
- Agriculture management
- Electronic health records
The land management is the registration of all the lands that are authorized by government geographical location.
The government has to keep records of all the land and the local bodies of government.
The blockchain provides the trust, transparency and accuracy in maintaining the land records.
It also helps to build a robust land management system.
The blockchain provides the reduction in cost of storing the physical records about the land property.
This will helps in time and promotes the transparency.
Q18) Write use case on blockchain used by government in brief.
A18) The blockchain is sued for providing the security, immutability, transparency in financial sector.
The blockchain for government becomes a benefit to deliver tangible profits to the government clients.
The list of public sector blockchain application continues to grow in network.
Following are the benefits in blockchain for government:
- Building trust with citizen
- Protecting sensitive data
- Reducing costs and improving efficiency
The blockchain is the solution on transparency through decentralization.
It allows the participant parties to see and verify data in network.
The blockchain gives the services to the citizens for independent verification of government claims.
The government has large amount of hackers to steal the sensitive data.
Therefore blockchain becomes the solution for protecting the sensitive data on the network.
The data structure which is harden network security by reducing single point of failures risk.
The government becomes serious about the blockchain in cyber security department.
The government always manages the cost of budget where blockchain becomes helper of government.
The blockchain solutions could reduce the redundancy, streamline processes, decrease audit burden, increase security and ensures data integrity.
Q19) Make a list on record keeping entities of government blockchain.
A19) There are various departments of government where the blockchain is used such as:
- Land management
- Digital identity
- Property records
- Scheme management
- Agriculture management
- Electronic health records
The land management is the registration of all the lands that are authorized by government geographical location.
The government has to keep records of all the land and the local bodies of government.
The blockchain provides the trust, transparency and accuracy in maintaining the land records.
It also helps to build a robust land management system.
The blockchain provides the reduction in cost of storing the physical records about the land property.
This will helps in time and promotes the transparency.
Q20) Write short note on consensus protocols of government blockchain with proof of work and proof of stake.
A20) The blockchain is a distributed and decentralized network which provides privacy, immutability, transparency and security.
There is no central authorization in blockchain therefore it is completely secure and verified structure.
This is possible only because of consensus protocol.
Consensus protocols are the core part of blockchain network.
The consensus algorithm is a procedure through which all the participants of the blockchain network reach a common agreement about present state of distributed ledger.
The consensus algorithm gives the reliability to the blockchain.
Following are the various consensus algorithms used by blockchain network.
- Proof pf work
- Practical byzantine fault tolerance
- Proof of stake
- Proof of burn
- Proof of capacity
- Proof of elapsed time
Proof of work
This consensus algorithm is used to solve complex mathematical puzzles.
The mathematical puzzles requires lot of computational power and then node who solves the puzzle soon that gets the mine to the next block.
The bitcoin uses the Proof of Work consensus algorithm.
In this consensus the miner is selected for next block generation.
Proof of stake (PoS)
It is alternative of proof of work (Pow).
The PoS used by Ethereum which is shifted from PoW consensus.
In this consensus algorithm the validators invest on the coin of the system by locking up some of their coins as stake.
Instead of investing on expensive hardware to solve complex puzzles validators invest on locking up coins as stake.
After that all the validators start validating the blocks.
Validators placed bet on the block that they wants to be added if the block is discovered the block is added into the chain.
As the block gets added by validators they win reward according to their bets and their stakes get increase respectively.
At the end, a validator is chosen to generate a new block based on their economic stake in the network.
Hence PoS encourages validators through an incentive mechanism to reach an agreement.
